Oil Prices Jump on Trump's Rejection of Iranian Peace Deal

Oil prices rose about 2 percent on Monday after US President Donald Trump rejected an Iranian peace deal to resolve their conflict and reopen the Strait of Hormuz. The price increase was driven by concerns over energy infrastructure and flows, particularly in the Middle East. Brent futures were up $1.68, or 1.6 percent, at $106 a barrel by 13:20 GMT, while US West Texas Intermediate crude was at $94.10 a barrel, up $1.69, or 1.8 percent.

The Iranian peace proposal was announced last week at the UN General Assembly in New York and transmitted to the Americans via Qatari mediators. However, Trump rejected the plan on Saturday but indicated that US negotiators would engage in further talks this week. Mediators are expected to hold separate talks with the US and Iran on Monday or Tuesday.

The rebound in crude oil exports from key Middle East producers in September was also a contributing factor to the price increase. According to preliminary data, Saudi Arabia and the United Arab Emirates boosted exports, which reached 12.8 million barrels per day, the highest since February. However, despite the recovery, flows remain below pre-conflict levels, keeping the market undersupplied.